Porsche 2007 Annual Report Download - page 145

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To our shareholders
The Company
The new Panamera
Financials
Discontinued operations pursuant to IFRS 5
Discontinued operations which are removed from the consolidated group are disclosed separately
in accordance with IFRS 5. Expenses and income arising prior to deconsolidation and the gain on
sale are disclosed separately in the income statement as assets allocated to discontinued opera-
tions. The prior-year figures of the income statement are adjusted accordingly.
Significant accounting judgments, estimates and assumptions
The preparation of consolidated financial statements is to a certain extent subject to assumptions
and estimates that have an effect on recognition, measurement and disclosure of assets, liabilities,
income and expenses as well as contingent assets and liabilities. Significant assumptions and
estimates are made for uniform useful lives within the Group and the recoverable amounts recog-
nized for non-current assets, the classification of leases as operating and finance leases, the
determination of the need to record or reverse impairments at associates, the recoverability of
receivables, determination of the percentage of completion for long-term construction contracts
and the recognition and measurement of provisions. In individual cases, actual amounts may differ
from the estimates. The carrying amounts of the assets and liabilities affected by estimates can
be gathered from the breakdowns of the individual balance sheet items.
The assumptions and estimates are based on parameters which are derived from the current
knowledge at the time. In particular, the circumstances prevailing at the time of preparing the
consolidated financial statements and assumptions as to the realistic future development of
the global and industry environment were used to estimate the Company’s future business
performance. Where these conditions develop differently than assumed, and beyond the control
of management, the actual figures may differ from those anticipated. In such cases, the assump-
tions, and if necessary, the carrying amounts of the assets and liabilities concerned, are adjusted
accordingly.
At the time of preparing the consolidated financial statements, the underlying assumptions and
estimates were not subject to any significant risks. Consequently, as things stand today, a
significant adjustment is not expected in the assets and liabilities disclosed in the consolidated
financial statements for the next fiscal year.
Termination rights of minority interests
In cases where minority shareholders have termination rights, a liability is recognized equivalent to
the compensation obligation and the difference between the liability from the termination right and
the pro rata equity of the minority shareholder is recorded directly in equity. Dividend payments to
minority shareholders are recorded as a repayment of the compensation obligation. Deferred taxes
are recorded on temporary differences for partnerships between the IFRS balance sheet and the
tax accounts.